The NFL Draft is held every Spring. Like every year, top college prospects will sign contracts for millions of dollars.
For many star athletes, becoming a millionaire overnight is challenging. That’s especially true if they come from a background not surrounded by money. The idea of managing sudden wealth is completely new to them, and it can be confusing to know what to do.
The importance of an NFL player financial advisor holds more weight than ever before with contracts continuing to push the limits of salary caps in the NFL.
Investing in the future goes beyond just saving, and the right advisor is an important part of the wealth management process. Realistically, NFL players’ careers are also short-lived, and without proper money management, so is their money.
Read on to learn what an NFL financial advisor does and how they can help players manage their wealth.
What is an NFL Player Financial Advisor?
NFL financial advisors are financial advisors for professional athletes. A professional football financial advisor works with both new NFL players and seasoned pros. They not only help athletes manage their cash flow but also protect returns on investment far after the playing days are over.
NFL financial advisors give guidance to players and can be the difference-maker in creating generational wealth. This adds an additional layer of protection for professional athletes who are often young and uneducated in money matters. These advisors work specifically with professional athletes and are vetted through full background checks. Each advisor must apply and meet all requirements before being matched with players. NFL financial advisors complete specialized training that makes them adept in dealing with circumstances specific to NFL players and sports agents.
Players’ sports agents will recommend an advisor from the NFL list, but ultimately, it’s up to the NFL player to make the final decision on who will manage their money.
Why Do Professional Athletes Need a Financial Advisor?
Impacted by fraud to mismanagement of funds, the money players commit to may not always be what they see. In the course of just a few years back in the late 90s and early 2000s, over 70 NFL players were targeted and lost over 40 million dollars.
While NFL players earn a lot of money, most careers are short-lived. The average career of an NFL player is only three years. That means, if players don’t plan ahead, that money won’t last into retirement.
Here are a few additional reasons why NFL athletes need an NFL player financial advisor:
- Players must stretch out their short-term earnings over a long period of time.
- They need help learning how to invest their money for retirement and other investment opportunities.
- Tax implications can be quite complex for NFL players, and an NFL player financial advisor can help lessen the tax burden and reduce tax risk, making it easier for them to keep their hard-earned money.
Financial Advisors for Professional Athletes Provide Expertise in Taxes and Saving.
A professional football financial advisor helps an NFL athlete’s money go further. But that’s not all.
NFL financial advisors help curb a player’s taxes, fees, and spending habits. As fiduciary advisors, the only agenda they have is to ensure a player’s personal wealth for a lifetime. A fiduciary, by definition, acts in the best interests of the other party. They are bound both legally and ethically to the other party’s interest and put the other’s well-being before their own.
Athletes & Tax Management
Wealth management starts with decreasing an individual’s tax burden. Taxes can be confusing for most, but add in a layer of NFL games scattered all across the US (and sometimes even international games), bonuses, off-field financial agreements, and more, taxes can become too complex to tackle. The right NFL financial advisor can help a player navigate the murky waters of taxes.
NFL financial advisors can help players understand tax challenges and opportunities, including:
- Establishing housing in a no-tax state to save taxes
- Ease the “jock tax” that comes with playing in different states for road games
- Educating players on the tax impact from signing bonuses
- Dividing tax deductions between earned wages, endorsements, appearance fees, and residuals
Athletes Can Save Money
A professional football financial advisor focuses on a player’s long-term savings. They work with players to diversify their portfolios and invest their money. Diversifying a portfolio is key to growing wealth over time, and an advisor will steer players in the right direction to maximize their long-term profits. From real estate to retirement funds and everything in between, players can confidently pursue a variety of wealth-generating ventures with the help of their advisor.
Professional athletes could be investing in:
- Index funds and IRAs
- Stocks and bonds
- Real estate
- Annuities
- Investing in businesses (franchising)
An NFL career doesn’t last forever, but with the right NFL financial advisor, a player’s money can.
Hire An NFL Player Financial Advisor for Wealth That Lasts a Lifetime
Big contracts are great, but players need wealth that lasts a lifetime, not just a season. The right NFL financial advisor can ensure long-term savings for players and their loved ones. Frederick E. Hubler Jr. is a retired member of the National Football League Players Association (NFLPA) Financial Advisor Program.
If you or someone you know are looking for an NFL player financial advisor, start a conversation with our team today. Get the answers to questions you never thought to ask.
If you need more information check out choosing a financial advisor in Chester County.